Optimizing Your Industrial Property for Cold Storage and Food Manufacturing

For industrial real estate users, efficiency is often the most critical attribute that they seek from their facility. But efficiency doesn’t happen by accident; it’s usually the result of meticulous planning and collaboration.

And there are specialized considerations you’ll need to account for if you have cold storage or food/beverage manufacturing needs. You’ll want to approach your space strategically and with greater intent than other businesses; you might have to prepare for a larger number of workers per shift; and you’ll almost certainly need to plan for increased energy usage compared to other industrial users.

In fact, your requirements are probably esoteric enough that some buildings won’t even be able to accommodate them. That said, is it possible to convert a pretzel factory to a cold storage warehouse? Possibly. To uncover the answer to that and other critical queries, we’ll dig deeper into some of the unique issues you’ll probably encounter when trying to optimize operations in your food/beverage or cold storage business.

Some of the most critical questions that cold storage or food production companies need to consider when leasing or purchasing a new facility are:

• What is building programming?
• Can you convert an existing property?
• How do you account for increased worker density?
• How do you plan for increased energy supply and distribution?
• What are the outdoor storage considerations?
• Does your budget allow for a mezzanine?
• Do you need to check water supply, clarifiers and water discharge needs?
• What are the benefits of cross-dock orientation?

The process of developing an understanding of your company’s unique space needs in a warehouse setting is referred to as building/space programming. This can be a complex process for any business, and it usually requires the participation of an architect.

In the food/beverage and cold storage industry, the programming process is even more intricate. In fact, it can take years for a project to progress from the vision stage to active construction.

Two options exist for programming in the food/beverage and cold storage industry. The first is a “box-in-box” system, where an internal climate-controlled system is installed in a portion of a much larger building shell. The second option is to use the building’s existing walls and roof as insulation, thereby transforming the entire warehouse into part of the refrigeration system.

By working closely with an architect, you will be able to determine which building programming option suits your company’s specific needs.

It is usually difficult to convert an industrial building that was used by one food producer to accommodate the requirements of another food production company. This is because every company has their own proprietary methods and manufacturing processes. Making pretzels, for example, is a very different undertaking than manufacturing Greek yogurt.

Locating an existing building that offers the appropriate amount of space, cooler temperature, freezer spaces, floor drains, clarifiers and wash-down walls can be extremely challenging. Other common conversion issues include ceiling clearance height, room adjacencies for flow and thermal or refrigeration efficiencies. In many instances, it can cost hundreds of thousands of dollars to remove all of the existing improvements before building out the new installation.

For these reasons, adaptive reuse just isn’t a cost-efficient option in many markets throughout the U.S. Higher-priced markets are often an exception to this rule, given the expenses associated with development in areas such as Los Angeles or New York City. But in many other locations, purchasing land and constructing a custom facility is more practical than adapting an existing property.

An increased number of production workers per shift and quantity of shifts in the food production industry — in some instances, manufacturers run three shifts, 24 hours a day, seven days a week —typically results in the need for additional warehouse restrooms with higher stall counts, as well as larger break rooms and locker rooms and additional parking spaces.

Special air supply requirements are also often required, in order to finely balance the air pressures between adjacent production spaces.

Utilities and energy availability are vital for the food production industry. These facilities usually require machines that blend, mix, convey and package their products. Food and beverage production often mandates cooler and freezer space, conveyor systems, blast freezers and spiral freezers. All of these elements necessitate more energy than dry systems, and this energy needs to be distributed throughout the warehouse via additional subpanels, transformers, switches and backup generators.

Cold storage, meanwhile, requires additional refrigeration units. Different types of systems deserve your consideration. Ammonia systems were prevalent for a long period of time, whereas freon systems are now more commonly used in facilities under 125,000 square feet.

Examine whether or not utilities are regulated, and, if necessary, call upon a qualified consultant to determine which system might be the best choice for your new warehouse.

Many food production companies need to store ingredients such as sugar, oil and flour in large silos outside of their building; these silos and tanks require concrete footings.

These silos usually do not entail screening or enclosures, but they do require coring through the tilt-wall panel for pipes to connect them to the building. Keep in mind that all of these installations will need to be removed and patched when the lease expires.

Some food production warehouses install steel platforms, or mezzanines, within the warehouse building to create a second story. This second story can be used for office space or for welfare space above process areas with low ceilings.

However, it’s important to bear in mind that mezzanines can be expensive to install and remove. They can be nice additions to a warehouse, but it is vital to consider the impact of this improvement during the initial lease negotiation phase, and to have a clear understanding of your restoration responsibilities when the lease expires.

The warehouse’s water supply depends on water pressure and the size of the water line coming from the local municipality. Depending on the type of food production facility you’re operating, you might need a more abundant supply of water than the building currently provides.

You should also consider the fact that liquid waste can require different types of separators and clarifiers, which are basically variably sized screens that filter waste particles from the water supply. Clarifiers might require approval and credits from some cities, and only a certain amount of waste can go through the system at one time.

Water discharge is another area you’ll need to address before signing any agreement to lease or purchase a new industrial site for food/beverage production or cold storage purposes. You should be aware of your present (and potential future) wastewater needs, so your business can grow in a location that can accommodate them.

Many large companies have spent considerable resources exploring industrial property developments, only to discover late in the negotiation process that the location cannot accommodate their discharge requirements.

Many food/beverage and cold storage operations require temperature-controlled dock areas. Docks also need to be closed to outside elements with seals, shelters, screens and motorized roll-up doors to keep out dust, dirt, bugs and pests.

Most food producers will benefit from selecting an industrial building with a cross-dock orientation, which enables raw materials to come into the building in one area, while finished products depart from the other side of the dock. This cross-dock orientation is typically found in newer buildings.